Riga
In May Latvian capital market turnover amounted to EUR 124.03 million (LVL 67.64 million). Equity trading volume was EUR 32.05 million, while debt trading, was EUR 91.98 million. Equity market capitalisation at the end of the month stood at LVL 299.06 million (EUR 548.29 million), while total value of debt securities was EUR 551.95 million. Both Dow Jones RSE and RICI indexes have appreciated since the end of the previous month ΠDJ RSE by 2.57%, and RICI still more visibly, by 7.75%.
In equity market Balta with LVL 14.38 million turnover was the market leader, largely owing to block trades or registered trades. In debt market Government Bond with 5 year maturity retained its leadership and was traded LVL 26.93 million worth in altogether 43 deals. Codan, a majority shareholder of Balta (73.35%), has announced a share buy-back offer to remaining shareholders. The offer is open from May 28 2001 and closes on June 22, 2001. The buy-back price is LVL 4.50 per share.
On May 30 a discussion on the new Commercial Law, to become effective from July 1, 2001, was organised jointly by the Riga Stock Exchange and the Latvian Lawyers' Association. The seminar was attended by the authors of the law, practising lawyers, Riga Stock Exchange issuers, other major private businesses, bankers, journalists - altogether 200 people. The discussions covered topical issues associated with enactment of the new law and the law itself.
Tallinn
The monthly trading turnover was up by 1.5 times to EUR 39 million in May, mostly influenced by dividend payments by listed companies as well as higher investor activity overall. The most actively traded stocks were Eesti Telekom and Hansapank, which posted healthy gains of 7% and 14%, respectively. The TALSE index was up by 10% to 147.83. HEX completed further transactions with the shares of TSE to raise its stake in TSE to 60.3%. The Central Bank of Estonia sold 26 TSE shares to HEX. The remaining holding of the Central Bank of Estonia in TSE is eight shares. The Estonian Ministry of Finance sold its total holding of 34 TSE shares to HEX.
Hansapank got all necessary regulatory approvals for the purchase of Lithuanian Savings Bank (Lietuvos Taupomasis Bankas (LTB)), given by the Central Bank of Estonia and Lithuanian Competition Council. Hansapank will pay LTL 150 million for a 90.73% ownership in LTB. Additionally, Hansapank is committed to invest LTL 150 million in LTB, including LTL 120 million for the re-capitalisation of the bank. On May 31, the TSE celebrated its 5th anniversary as the first transaction on the Estonian bourse was done by president Lennart Meri on May 31, 1996. The anniversary events included a seminar about the benefits of TSE-HEX co-operation for currently listed as well as for CEO-s of potential listed companies. The speakers included Gert Tiivas, CEO of TSE and Jukka Ruuska, president of HEX. The experience of a public company was shared by Ilkka Salonen, Vice President of HEX-listed Comptel as well as by Mart Tõevere, Head of Investor Relations of Hansapank.
Vilnius
At the extraordinary meeting of Vilniaus Vingis shareholders, which took place on 19 May 2001, it was decided to reduce the authorised capital of Vilniaus Vingis by LTL 9.12 million to LTL 36.49 million and pay the available funds of the company to all shareholders. The company™s authorised capital will be reduced by decreasing the nominal value of shares from LTL 5 to LTL 4. Shareholders who will have company™s shares on the day the reduction of the authorised capital is registered with the Ministry of Economy will be paid LTL 1 per one ordinary registered share.
The Estonian bank Hansapank transferred LTL 150m into the account of the State Property Fund for shares of Lietuvos Taupomasis Bankas and became its official owner. On 4 June 2001, the Securities Commission of Lithuania registered a mandatory tender offer of Hansapank to buy up minority shareholdings of Lietuvos Taupomasis Bankas at LTL 9.88 per share.
At the general shareholders™ meeting of Lietuvos Jûrø Laivininkystë as of 26 May 2001, it was decided to reorganise LISCO by way of division by establishing two new companies, namely Lisco Baltic Service and Lietuvos Jûrø Laivininkystë. On 27 June 2001, statutory shareholders™ meetings of companies which will operate after reorganisation of LISCO are to take place.
From 1 June 2001, share issues of Takioji Neris and Lietuvos Kuras were removed from the Current List. The resolution to delist shares of Klaipëdos Transporto Laivynas from the Current List from 1 June 2001 was revoked as the company had decided to stay on this list. Following request of the companies, shares of Baltijos Laivø Statykla and Endokrininiai Preparatai will be removed from the Current List from 2 July 2001. After delisting of shares from the Current List, central market procedures will still be applied for the following six months.
